What’s Behind the Crypto Crash?
Historically, higher interest rates have driven down valuations for growth stocks and cryptocurrencies alike, echoing trends seen in 2022. The current crypto rally, which began following election speculation about crypto-friendly policies, is likely losing steam.
In summary, Jamie Coutts believes the crypto crash is due to shrinking global liquidity, caused by central banks reducing their balance sheets and the money supply (M2), which makes it harder for Bitcoin and other risk assets to thrive.
